On September 21, AGSIW hosted a discussion on Saudi Arabia's economic future.
Speakers
Garbis Iradian, Chief Economist, MENA, Institute of International Finance
Amine Mati, Assistant Director, Mission Chief for Saudi Arabia, and Head of GCC Division, International Monetary Fund
Tim Callen, Visiting Fellow, AGSIW (Moderator)
Saudi Arabia has rebounded strongly from the economic downturn stemming from the coronavirus pandemic and had the fastest-growing economy in the G20 in 2022. While Saudi Arabia’s real gross domestic product growth has slowed in 2023 as oil production has been cut, its private non-oil economy continues to grow robustly. Strong growth has created jobs, and the unemployment rate has declined substantially, while inflation remains well contained.
Despite these favorable outcomes, questions remain about Saudi Arabia’s economic path going forward. Is recent strong growth in the non-oil sector sustainable, or has it been driven by high oil revenue and is therefore susceptible to a downturn in the oil market? Is there evidence that the Vision 2030 reforms are supporting a more diversified economy? What reforms still need to be implemented to support strong, sustained growth in the private non-oil sector? Will efforts to develop new sectors of the economy through domestic and external investments by the Public Investment Fund bear fruit? How will global efforts to address climate change affect the Saudi economy?
AGSIW was pleased to host a discussion, based on the International Monetary Fund’s recently released 2023 Article IV report, focused on Saudi Arabia’s economic outlook and the policy challenges that need to be overcome to ensure that strong growth continues.
agsiw.org
